Issues and Problems

The two distinguishing characteristics of common resources, namely subtractability and non-excludability, lead to a number of different economic problems. Ostrom, Gardner and Walker provide a useful simplification that divides the problems associated with common resources into two separate classifications: appropriation and provision problems.

An appropriation problem results when beneficiaries of a resource are presented with a dilemma of how to exclude others from the use of the resource and allocate the subtractable flow of the resource. Types of appropriation problems: